In her prepared remarks, Yellen downplayed risks of financial instability.

“Although asset valuations are high by historical standards, overall vulnerabilities in the financial sector appear moderate, as the banking system is well capitalized and broad measures of leverage and credit growth remain contained,” she said.

Earlier in the week, Dallas Fed President Rob Kaplan seemed more worried about potential financial imbalances.

He noted that the stock market has now gone 12 months without a 3% decline.

Steve Stanley, chief economist at Amherst Pierpont Securities, said he thought Yellen’s testimony was less dovish than her last public appearance at New York University last week.

In her remarks, Yellen said: “In my view, the recent lower readings on inflation likely reflect transitory factors. As these transitory factors fade, I anticipate that inflation will stabilize around 2 percent over the medium term. However, it is also possible that this year’s low inflation could reflect something more persistent.”

Speaking at NYU, Yellen “came across as giving more credence” to the view that low inflation might last longer than expected, Stanley said.

“Maybe the press coverage was not quite true to the spirit of what she said and she felt the need to correct the record – or maybe she just didn’t like the way her dovish comments from last week sounded. In any case, her apparent change of tone regarding inflation is clearly the most important aspect of the testimony,” Stanley wrote in a note to clients.

Congressional Democrats are all praising Yellen. Sen. Amy Klobuchar, Democrat from Minnesota, sends out a tweet just before she begins to ask the Fed chairwoman questions. The tweet “is very popular,” Klobuchar says.

Left Judiciary for Joint Economic Committee where Chair Yellen is making her last appearance before our Committee. She has been a strong trusted steady presence at the Federal Reserve and has done good work for our economy and I have truly enjoyed working with her.